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Thread: Why not sell bonds to Irish deposit holders? letter in IT

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    Default Why not sell bonds to Irish deposit holders? letter in IT

    Interesting this. I mentioned it in another thread a few days ago. Why not sell bonds to Irish deposit holders? There are many billions on deposit in Irish banking institutions doing very little. The letter writer asks why sell bonds only to international bondholders?? Why not ask those with big deposits here to lend to the Government?

    Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)

    Any views?

    The Irish Times - Letters

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    Before you invest, read Kathleen Barrington on this topic in today's Business Post. Or even have a look at the Financial Times blog Alphaville quoting Reuters - the heading is Let them eat Irish Bonds.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Quote Originally Posted by asset test View Post
    Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)
    An Post already sells government debt (through certain products) to Irish people. Reasonable enough returns too.

    However, deposits are generally seen as low risk investments. Irish government bonds would certainly not come under that category and you don't want to end up selling them to widows and orphans.

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    Quote Originally Posted by hmmm View Post
    An Post already sells government debt (through certain products) to Irish people. Reasonable enough returns too.

    However, deposits are generally seen as low risk investments. Irish government bonds would certainly not come under that category and you don't want to end up selling them to widows and orphans.
    Yet Irish Pension Fund managers are gagging for them to the point of lobbying for a change to the Pension Act apparently.

    Now why might that be?
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Quote Originally Posted by He3 View Post
    Yet Irish Pension Fund managers are gagging for them to the point of lobbying for a change to the Pension Act apparently.

    Now why might that be?
    Pension fund managers mix asset classes of different risk types together. It's hardly a giant conspiracy.

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    No one has suggested a conspiracy - why do you deny something that has not been said?
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    .
    You would want to be pretty dumb to buy bonds from this bunch of thieves.
    .
    .

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    Quote Originally Posted by asset test View Post
    Interesting this. I mentioned it in another thread a few days ago. Why not sell bonds to Irish deposit holders? There are many billions on deposit in Irish banking institutions doing very little. The letter writer asks why sell bonds only to international bondholders?? Why not ask those with big deposits here to lend to the Government?

    Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)

    Any views?

    The Irish Times - Letters
    We had it not so long ago........it was called the National Solidarity Bond......it flopped.

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    Quote Originally Posted by Dolores Ibárruri View Post
    If, as has been suggested, there is €88 billion of Irish savings on deposit, surely it is a good time to get some of that flowing through the economy to build the schools etc we will need for a growing population
    One of the last acts of the Argentinian meltdown was the government seizing people's deposit accounts. Seeing talk of "getting that money flowing" reminds me of those days.

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    Default Better to sell bons to foreigners so that they take the loss when we default

    Better to sell bonds to foreigners so that they take the loss when we default
    Last edited by Gemlarkin; 10th October 2010 at 08:35 PM.

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